Bengaluru-based Ola Electric is making major moves to strengthen its position in India’s electric vehicle (EV) market. The company recently announced that its wholly owned arm, Ola Cell Technologies (OCT), will invest up to ₹877.64 crore in its fellow subsidiary, Ola Electric Technologies (OET). This investment aims to support the development of electric vehicles, battery technology, and key EV components.
Why the Investment?
This strategic funding is part of Ola Electric’s revised IPO plans, which were approved by shareholders on August 22, 2025. The fresh capital will help OET expand its production capabilities, develop new technologies, and strengthen its supply chain for electric two-wheelers and batteries.
About Ola Electric Technologies (OET)
Incorporated in 2021, OET is engaged in the development and manufacturing of electric two-wheelers as well as core EV components such as battery packs, motors, and frames. The company follows a vertically integrated model, meaning it handles multiple aspects of production in-house, which helps improve efficiency and reduce costs.
Financial Overview
Ola Electric Technologies (OET) has shown steady growth in recent years:
- FY25 Turnover: ₹4,510 crore
- FY24 Turnover: ₹5,000 crore
- FY23 Turnover: ₹2,586 crore
Despite a slight dip in FY25 compared to FY24, the company continues to maintain strong operational performance and remains a major player in the EV sector.
The investment also aligns with Ola Electric’s gigafactory project in Tamil Nadu, which focuses on localising battery cell production. This initiative will help reduce reliance on imports, cut costs, and support India’s push towards sustainable mobility and EV adoption.
Since the investment is between fellow subsidiaries, it qualifies as a related-party transaction. However, the company has confirmed that the deal is being executed on an arm’s length basis, ensuring fairness and transparency.
Conclusion
This capital boost from OCT to OET reflects Ola Electric’s commitment to strengthening EV technology and battery manufacturing in India. With growing focus on sustainable transport and EV adoption, this move positions Ola Electric as a leading innovator in the Indian electric vehicle industry.